markitect-main/examples/infospace-with-history/output/entities/higgling-and-bargaining-of-the-market.md

Higgling and Bargaining of the Market

Definition

The process of negotiation and price discovery through which market participants adjust prices based on their perceptions of value, difficulty of production, and relative scarcity.

Source Chapter

Book I, Chapter 5

Context

Smith uses this phrase to describe how the market, through its natural processes of negotiation, arrives at prices that reflect the relative value of different commodities.

Economic Domain

Exchange

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